P2; Chapter 4, Example 3

This topic has 1 reply, 2 voices, and was last updated 12 years ago by MikeLittle.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
September 28, 2013 at 8:57 pm #141613
tripo3m
Member
- Topics: 12
- Replies: 18
Dear Sir,
How was the Issue of the 175,000 resolved, the video did not show the final process, it seems to be the share of the NA that belongs to the NCI (25% Of 700,000)
Since the Parent is disposing 100% of its shareholding which is 75% and as a result of control, they were the ones preparing the consolidated books of accounts, at the disposition of the Sub, this could be an entry to close the NCI books. Dr NCI to remove all the amounts attributable to them and Credit Parent’s Reserves.
These are my thoughts off the caffe, let me know what the conclusion was on this matter.
Regards,
September 30, 2013 at 4:13 pm #141742
MikeLittle
Keymaster
- Topics: 27
- Replies: 23368
Since the subsidiary is being disposed of in full, then yes, we need to debit the nci with their share of the subsidiary as at date of disposal. That (from memory) gets rid of the nci at the same time as we get rid of the subsidiary!
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.